Hybrid water heater- Washington

I live in Washington and as my water heater is leaking, looking for suggestions for new water heater. I was reading about heat pump water heater and its energy savings, as it pulls heat from the surrounding it seems given the colder temperatures in Washington it may not be a good idea to go with heat pump water heater.

Installation for Rheem pro terra is 5500 and non heat pump installation in around 2200 as per quotes received.